Despite a sharp rally on the last day of May, the major averages fell 1-2% for the month. Let’s take a look at the Dow (chart), S&P 500 (chart), Nasdaq (chart) and the Russell 2000 (chart). Not too shabby considering that our domestic economy is showing signs of weakness, especially with the continuing saga in the housing sector. Furthermore, the Euro zone is also struggling, particularly in Greece, which is in need of finanicial aid again. Then there is the ongoing middle east crisis, not to mention the aftermath of the tragedy in Japan. The list seems endless, however, the markets were only down a couple of percentage points or so in May. It could of been a heck of a lot worse, folks!
What’s in store for June? Typically both May and June are softer months for equities, however, there will be no shortage of economic news coming out. This week alone we will get a clear reading of the state of our economy from the likes of chain store sales, jobless claims, and factory orders just to name a few. The single most import report that all eyes will be on is the May jobs report, which is due out on Friday before the market opens. Let’s hope we begin to see some meaningful job growth for that’s where our real recovery will truly begin.
Good luck to all 🙂